Cost of Geothermal Heat Pumps

Utilizing free energy from the earth beneath your feet, it is undeniable that geothermal is environmentally friendly and responsible. Geothermal heating and cooling uses the relatively constant temperature of the earth to heat and cool homes and businesses with 40% to 70% less energy than conventional systems. It also has the added benefit of providing free domestic hot water during the summer season and reduced cost for domestic hot water during the winter. All of these benefits sound good on top of "going green" but it all comes down to one final question. How much will this cost? Is geothermal "green" in both an investment perspective as well as an environment perspective?

Installation for geothermal heat pumps does have a high upfront cost. There are a lot of variables--where you live, the ground to be drilled, the square foot of the house--and though everyone agrees about its high initial expense, exactly “how much” remains vague at best. A good general idea for cost would be twice the price of a regular heat pump system with air conditioning. A geothermal heat pump costs about $2,500 per ton of capacity, with the typically sized house needing a three-ton unit and putting the cost at roughly $7,500. Installation can bump the costs up to $10,000 or more depending on depth of pipes, type of equipment, and soil conditions.

On the flip side, the geothermal heat pumps offer high efficiency and low operating cost. Savings on the electric bill are immediate and considerable. According to the EPA, geothermal heat pumps can save homeowners 30 to 70 percent on heating and 20 to 50 percent on cooling costs over conventional systems. Average consensus is that it will take about 5-10 years to see a return in the investment but that utilizing geothermal energy could prove a good financial decision for the long-term homeowner. To encourage the switch to a renewable energy source, some utility companies and agencies may pay a rebate and energy Star-rated ground-source heat pumps may qualify for federal tax credit.

In the end, geothermal heat pumps are durable and require little maintenance. They have fewer mechanical problems and the underground piping used is often guaranteed to last 25 to 50 years. Quiet to operate and pollution free, geothermal heat pumps are an underused technology with a huge potential in the long run. Despite the debate on costs and the tough initial decision, figures indicate that 95% of heat pump owners would recommend a similar system to their friends or family.